According to FiinGroup, total outstanding corporate bonds reached about VNĐ1.37 quadrillion or US$56 billion by the end of November. VNA/VNS Photo

HÀ NỘI — Việt Nam’s corporate bond market lost momentum in November 2025, as issuers turned more cautious and funding costs edged higher, pushing total issuance down to VNĐ36.7 trillion, the lowest level in four months.

According to FiinGroup, total outstanding corporate bonds stood at about VNĐ1.37 quadrillion, or US$56 billion, by the end of November. This marked a modest increase of 1.2 per cent from October and 9.4 per cent year on year, signalling that market growth has begun to slow.

The main driver was a sharp fall in new issuance. Total issuance in November dropped 46.3 per cent from the previous month to VNĐ36.7 trillion, the weakest level in four months. Notably, there were no public bond offerings during the month, with issuance concentrated entirely in private placements.

Privately placed bonds continued to dominate the market, accounting for VNĐ1.21 quadrillion, or 88.8 per cent of the total outstanding value. Publicly issued bonds declined to VNĐ153.6 trillion, reflecting the absence of new offerings and several early redemptions and maturities, including bonds issued by LPB, BAB, CII and TCX.

Issuance slowed across both banking and non-banking sectors. Banks nevertheless remained the market’s main pillar, accounting for 68 per cent of cumulative issuance since the beginning of the year, equivalent to VNĐ366.6 trillion. In November alone, banks raised VNĐ22.1 trillion through bond issuance. Although this was down 24.7 per cent from October and marked the lowest level in eight months, several mid-sized and smaller lenders, including SSB, LPB, TPB and ABB, issued bonds eligible for Tier-2 capital.

By contrast, the non-banking sector cooled sharply after strong issuance in October. Total issuance by non-bank firms fell to VNĐ14.6 trillion, down 62.6 per cent month on month. Real estate companies accounted for VNĐ12.8 trillion of this amount, a decline of 60.8 per cent from October. Despite the drop, issuance remained three times higher than in the same period last year and broadly in line with the average recorded in the second quarter of 2025.

On a cumulative basis, real estate firms raised VNĐ120.5 trillion in the first 11 months of the year, up 96 per cent year on year, underscoring the sector’s continued reliance on the bond market.

Another notable trend was issuers’ preference for fixed-rate bonds, most of which pay interest in a lump sum at maturity. This reflects efforts to lock in funding costs and ease short-term cash-flow pressure amid gradually rising interest rates.

FiinGroup also warned that repayment pressure is building. In December 2025, principal repayments are expected to reach VNĐ45 trillion, with real estate accounting for around VNĐ13.3 trillion. Non-bank issuers alone face maturities of about VNĐ20.1 trillion.

In January 2026, total bond maturities are projected to decline to VNĐ8.6 trillion, roughly one-fifth of the December level and broadly in line with the same period last year. Non-bank issuers are expected to account for about VNĐ5 trillion, lower than in December but still 23.4 per cent higher year on year.

Early-year maturity pressure is typically lower due to seasonal factors. Even so, real estate remains dominant, contributing around 66.6 per cent of January maturities, equivalent to roughly VNĐ3.4 trillion, more than double the level recorded a year earlier.

FiinGroup also flagged warning signs. In November 2025, five issuers reported debt restructuring or delays in principal and interest payments. Looking ahead, non-bank firms are expected to face about VNĐ77.7 trillion, or $3.1 billion, in bond maturities in the first half of 2026, double the level seen a year earlier. Nearly 70 per cent of this amount, or about VNĐ54 trillion, comes from the real estate sector, indicating that medium-term liquidity risks remain concentrated in this segment. — VNS